MIAMI, June 6, 2018 /PRNewswire/ -- InfoSonics
Corporation ("InfoSonics" or the "Company") (NASDAQ: IFON) today
announced that it has closed a public offering of securities to new
and existing investors wherein it raised aggregate proceeds of
approximately $3.7 million. The Company sold
approximately 1,183,000 units at an offering price of $3.14 per unit. Each unit was comprised of
(i) one share of common stock or 0% Series A Preferred stock of the
Company and (ii) and a warrant to purchase one share of common
stock of the Company with an exercise price of $3.02 per share. The warrants are exercisable
beginning six months after issuance and expire three years from the
date of issuance. Each share of preferred stock is
convertible into common stock on a one-for-one basis.
The offer and sale of the shares of common stock and shares
underlying the convertible preferred stock were offered pursuant to
a shelf registration statement on Form S-3 (File No. 333-204469),
which was declared effective by the United States Securities and
Exchange Commission ("SEC") on June 5,
2015. The convertible preferred stock, the warrants and
shares issuable upon exercise of the warrants were offered in a
concurrent private placement pursuant to an exemption from the
registration requirements of Section 5 of the Securities Act
contained in Section 4(a)(2) thereof and Regulation D promulgated
thereunder.
Commenting on the fundraising, Mauricio
Diaz, Chief Executive Officer of InfoSonics stated: "We
intend to use the proceeds from this offering to fund the growth of
our OneClick® retail stores, primarily for inventory and
other working capital. After our merger with Cooltech
Holdings Corp. on March 12, 2018, we
are now working to optimize inventory levels at our existing stores
to increase sales and profitability. We currently operate 3
stores in Miami, Florida, with a
4th store under construction in Orlando and plans for expansion into other
Florida markets. In
Argentina we currently operate 6
stores, including our newest store opened in Buenos Aires, with plans to open 7 new stores
across Argentina in the next
year."
Commenting further, Diaz added: "Apple® has announced
a focus on expansion in Latin
America, and we are working with Apple® to be an
integral part of that expansion. In addition, upon
Apple®'s approval, we hope to expand into other U.S.
markets, as well as into Canada in
the next year. We are working now to deleverage our balance
sheet to position ourselves for growth both organically and through
acquisition, with a focus on our longer-term goal to become the
largest authorized reseller of Apple® products and
services in the Americas."
About InfoSonics Corporation
InfoSonics is a Miami-based
company comprised of OneClick®, a chain of retail stores
and an authorized reseller under the Apple® Premier
Partner, APR (Apple® Premium Reseller) and AAR MB
(Apple® Authorized Reseller Mono-Brand) programs; Icon
Networks, an authorized distributor to the OneClick®
stores and other resellers of Apple® products and
other high-profile consumer electronic brands; and
verykool®, a brand of wireless handsets,
tablets and related products the Company sells to carriers,
distributors and retailers in Latin America. Additional
information can be found on its websites at www.infosonics.com,
www.cooltech.co/site/, www.oneclickstore.com and
www.verykool.net.
Forward-looking and cautionary statements
Forward-looking statements in this press release and all other
statements that are not historical facts are made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements, including those related to expansion of
our stores in various geographic regions, optimization of inventory
levels, increases in sales and profitability, deleveraging our
balance sheet, acquisitions, and continuation of our license
agreements with Apple®, involve factors, risks, and
uncertainties that may cause actual results in future periods to
differ materially from such statements. There are a number of
factors that could cause actual events to differ materially from
those indicated by such forward-looking statements, including
actions by third parties, such as Apple®. These factors
include, but are not limited to, risks arising from prevailing
market conditions and the impact of general economic industry or
political conditions in the United
States or globally. A list and description of these and
other risk factors can be found in the Company's most recent Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K, which can be reviewed at www.sec.gov.
These forward-looking statements speak only as of the date of this
release and we undertake no obligation to publicly update any
forward-looking statements to reflect new information, events or
circumstances after the date of this release.
Apple® is the registered trademark of Apple Inc.
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SOURCE InfoSonics Corporation